JAMB - Accounts Principles Of Accounts (2016 - No. 24)
A discount that is allowed to encourage a debtor to pay off his debt within a period is the
annual discount
trade discount
periodic discount
cash discount
Explanation
A cash discount is a deduction allowed by some sellers of goods or by some providers of services in order to motivate customers to pay within a specified time. The cash discount is also referred to as an early payment discount.
Comments (0)
